Li Auto Commits 2.65 Billion Yuan to Expand Stake in Battery Maker Sunwoda EVB
Li Auto will invest 2.65 billion yuan ($390 million) in Sunwoda Electric Vehicle Battery to acquire an 8.79 percent direct equity stake, becoming the supplier's second-largest shareholder.
- 2.65 billion yuan ($390M)
- 8.79%
- 30.14 billion yuan
- 3.59% (7th in China)
What Happened
Under terms of the Series C++ financing round, the automaker is purchasing new shares in Sunwoda EVB, the power-battery subsidiary of Sunwoda. The subscription raises Li Auto's direct equity interest to 8.79 percent, with affiliated entities bringing aggregate indirect ownership to 11.17 percent. The transaction values the battery enterprise at approximately 30.14 billion yuan post-investment, following a pre-money valuation of 27.49 billion yuan.
Sunwoda will see its ownership diluted from 26.38 percent to 24.06 percent through its operating subsidiary while retaining board control and financial consolidation. During 2026's opening six months, Sunwoda EVB recorded 15.53 billion yuan in revenue against a 324 million yuan net loss. The battery unit had initiated ChiNext IPO preparations in 2023 without subsequent material listing disclosures.
Beyond equity investment, the two companies plan to deepen joint development of cell systems, thermal management, and pack integration. Li Auto previously established a 50-50 battery joint venture in Shandong, capitalized at 300 million yuan, to assemble in-house-designed battery packs for upcoming models in late 2026.
Sunwoda EVB ranked seventh among power battery installers in China during July with 2.66 GWh deployed, representing a 3.59 percent domestic market share according to China Automotive Battery Innovation Alliance figures. Li Auto concurrently maintains a five-year strategic supply partnership with CATL established in September 2025.
Why this matters
The capital injection secures dedicated battery production capacity and technological collaboration as Li Auto readies in-house battery designs for roll-out across its vehicle lineup. It also underscores automakers' ongoing drive to balance reliance on dominant cell suppliers like CATL with equity-backed alternatives.
Terms in This Story
- Series C++ funding
- An extension to late-stage venture financing rounds, typically used to raise additional growth capital before an initial public offering.
- CABIA
- China Automotive Battery Innovation Alliance, an official trade body tracking traction battery manufacturing and installation volumes across China.
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